iPhone Tool doesn't work anymore :(

Crap... I've used iPhone Tool once, and it worked perfectly... But then I went and tried to configure SSH, and somehow deactivated the device.
Now, when I run the iPhone Tool again, I get this:

2007-08-15 11:27:53.546 tool[417] Found iPhone Device: 1
2007-08-15 11:27:53.546 tool[417] Connecting...
2007-08-15 11:27:53.552 tool[417] Checking Pairing...
2007-08-15 11:27:53.564 tool[417] Starting device session...
2007-08-15 11:27:53.648 tool[417] ActivationState: Unactivated
2007-08-15 11:27:53.648 tool[417] Deactivating your iPhone...
2007-08-15 11:27:53.670 tool[417] New ActivationState: Unactivated
2007-08-15 11:27:53.670 tool[417] Activating your iPhone...
InvalidActivationRecord
2007-08-15 11:27:53.729 tool[417] New ActivationState: Unactivated
2007-08-15 11:27:53.729 tool[417] Your iPhone could not be activated.

I believe I replaced one file, iPhoneActivation.pem, and that might be f*cking things up.
Is there a way to fully restore the iPhone to the factory install?

Why not just hold the home+sleep buttons for 25secs and put it in restore mode, connect to iTunes and restore it back to factory?

Dixit

yes of course have a look at the other threads ;-)
here
iPhone OS System Restore Image

Yup, found the restore mode! I was able to activate it again!
But I have a 2nd problem now... I attempted to activate the iPhone via AT&T, and my activation process got stuck, so iTunes is always reporting my iPhone as "pending". It won't let me sync or do anything with my iPhone, even though it is already activated!